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For many entrepreneurs, the motivation to log long hours, take
incredible risks and work for peanuts is, simply, the exit
sign--the prospect of selling out and cashing in. One of the most
common questions I was asked while building my company was, "What
is your selling price?" It didn't matter what stage the company
was at, what it was worth or what its potential was. I thought
there'd be a day when I'd get an unsolicited envelope in the
mail, freeing me from the stress and financial pressures of
running a company. On top of that, I'd get to name the price.
What a deal.

Nothing could be further from reality. Exits happen because
acquirers open windows of opportunity. Like a real house, windows
open from the inside. The notion that founders can force an exit
is a bit like thinking they could walk up to a house, open a
window and sit down with the owners without recourse. In most
cases, exit windows come about because of the circumstances of
the acquirer, not just the seller.

Display your wares. Make sure your activities
are visible. Potential acquirers need to know what you are up to.
Maintain a presence at trade shows. Get mentioned in industry
publications. Make your company successes known.

It's not always about your company. The dynamics
that place an acquirer in a position to buy a company are just as
complex as those that position a company for a sale. Acquisitions
require access to cash, strategy discussions from top management,
internal champions to push the issue and, ultimately, a team that
will absorb the incoming company. Those things don't always line
up, so assuming a company will buy you just because it is big and
powerful is like assuming grizzly bears are always hungry (they
hibernate, too).

As you get bigger, your options shrink. It is
somewhat counterintuitive, but as company valuations increase,
exit options decrease. Not only do companies get too expensive to
buy, but if they've made an amazing run, it's likely because
they've navigated a new frontier that doesn't have a lot of
competitors (i.e., potential acquirers) to begin with.

Companies like Facebook, for instance, have evolved from dozens
of acquisition offers early on to just a few suitors in recent
years. Now, realistically, an IPO is the only cash-out option.
This is certainly not a bad thing, but founders need to realize
the farther they go down the path, the fewer people they will see
on it, and adjust their exit expectations accordingly.

Once founders realize storybook endings are rare, they can focus
on strategies to make real exits occur. By making sure potential
suitors are tracking your progress, understanding their internal
dynamics and ability to acquire and continually benchmarking your
expectations with growth, you will be ready when the window
opens.